Besides the efficient companies, many underperforming companies have lost during the Covid-19 pandemic. This problem causes difficulties for the management agencies as well as the company owners themselves. Therefore, companies decide to dissolve to ensure the interests of the company and its employees. In this article, LSX legal firm will give you information on: “How long does it take to dissolve a company in Vietnam?”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Dissolve a company
Dissolution of a company means that the company subject carries out legal procedures on dissolution to terminate its legal status as well as related rights and obligations. The time it takes to dissolve a company depends on the order to conduct the dissolution process.
When companies have a decision to dissolve, they need to register and complete the procedures before dissolution. The company dissolution process includes:
- The company owner registers the procedure for declaring the dissolution, and at the same time, publishes the notice of dissolution on 3 consecutive issues.
- The owner of the company goes to the tax office to confirm the completion of financial contributions.
- After that, go to the police station to carry out procedures for certification of the invalidation of the legal entity’s seal, and return the certificate of the seal sample.
- The company owner goes to a competent agency (usually the Department of Planning and Investment) to carry out dissolution procedures; and close the existing bank accounts of the company.
Dissolution of newly established company
To proceed with the dissolution of a newly established company, you need to perform the following steps:
- Firstly, approving the decision to dissolve.
- Secondly, send dissolution notices to relevant individuals and organizations.
- Thirdly, pay debts and liquidate company assets.
- Fourthly, finalize tax and close the company tax code.
- Then, cancel the company seal.
- Submit dissolution documents to the Business Registration Office.
- Lastly, complete dissolution procedures.
How long does it take to dissolve a company?
The process of dissolving the company will usually take about 1 week if everything goes well.
However, it may take longer, ie 10-15 days, even months if problems arise during the dissolution process such as tax debt.
Dossiers to apply for company dissolution
An application for dissolution of an enterprise shall consist of:
- The notification of the enterprise’s dissolution.
- The report on liquidation of the enterprise’s assets; list of creditors and paying debts, including tax debts, social insurance, health insurance, and unemployment insurance of employees after the dissolution decision is issued (if any).
Members of the Board of Directors (for joint stock companies), members of the Board of Members (for limited liability companies), the owner (for sole proprietorships), the Director/General Director, general partners, and legal representatives shall be responsible for the accuracy and truthfulness of the application.
In case the application contains inaccurate or false information, the persons specified above shall jointly provide the outstanding employees’ benefits, taxes, and other debts and bear personal responsibility for the consequences that occur within 05 years from the day on which the application is submitted to the business registration authority.
Instruction to apply for business dissolution online
Step 1: Compose 01 business settlement dossier and prepare valid documents according to the provisions of law.
Step 2: Submit your application online at: https://dangkytinhdoanh.gov.vn. The enterprise’s legal representative must transfer the enterprise settlement dossier to the business registration office within 05 working days from the time the enterprise settles all debts of the enterprise.
Step 3: Lastly, receive result.
Within 05 working days from the date of receipt of a valid dossier of explanation of the enterprise, the business registration authority shall update the enterprise management status on the enterprise registration database;
Instruction to submit business dissolution dossiers online
Step 1: Create a business registration account
To apply for a business settlement, you need an account on the website: https://dangkykinhdoanh.gov.vn.
Register for an account with the following steps:
- Declare personal information
- Prepare a scanned copy of your identification papers.
- Send request for registration.
- Lastly, receive confirmation email.
After having an account, you can proceed to apply for business dissolution. Besides, the preparation of an authentication signing tool is a necessity:
- If the application is submitted with the business registration account, the person who signs for authentication needs to be granted a business registration account;
- If applying by a Public Digital Signature, the person who signed the dossiers must have a Public Digital Signature attached to the Account.
Step 2: log in
Visit the website of the National Information Portal on business registration, address: https://dangkykinhdoanh.gov.vn.
Click on “Public services” > “Online business registration > Log in to your account.
Step 3: Enter your information and attach the scanned file
According to Article 210 of Law on enterprise 2020, An application for dissolution of an enterprise shall consist of:
- The notification of the enterprise’s dissolution;
- The report on liquidation of the enterprise’s assets; list of creditors and paid debts, including tax debts, social insurance, health insurance, unemployment insurance of employees after the dissolution decision is issued (if any).
- Additionally, power of attorney for individuals who carry out the procedure (if they cannot do it themselves);
Step 4: Prepare dossiers
Click on “Prepare”.
Enter the verification code that appears on the screen and select the management area, then click “accept”.
At this point, the profile will be moved to the preparation phase.
Step 5: Sign the account verification
Choose “Sign/verify business registration account” to complete the profile verification.
Step 6: Payment
Click on “payment”, then enter the payer’s information.
After the payment, the application’s status will change to “processing” on the system. The application then will be transferred to the business registration office’s account for processing.
When the system changes the application’s status to “Approved”, that means the company has applied to dissolve the business successfully.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Contact LSX
Finally, hope this article is useful for you to answer the question about: “How long does it take to dissolve a company in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
When deciding to dissolve, an enterprise can choose from the following methods:
Firstly: Apply for the dissolution of the enterprise directly at the business registration office of the province/city where the enterprise’s head office is located.
Secondly: Submit the enterprise dissolution dossiers through the National Business Registration Portal.
A company may only be dissolved when it ensures payment of all debts and other property obligations and is not in the process of settling disputes at Court or Arbitration. Business owners and related people must be jointly responsible for the debts of the business.
Business dissolved.
No longer have legal status.
Termination of the tax code.
Conclusion: So the above is How long does it take to dissolve a company in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
